Vista Outdoor cancels Czech deal vote, seeks options
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Vista Outdoor canceled the shareholder vote on its $2.15 billion deal to sell its ammunition division to a Czech arms company, and said the company will now seek strategic alternatives.
Why it matters: The move is the latest twist in a nearly two-year drama, and puts the entire company back in play as a rival bidder looms in the background.
Zoom in: Vista shareholders were set to vote on its signed agreement with the Czechoslovak Group (CSG) at 10 am EST on Tuesday, a vote that was postponed several times due to rival bids, most notably from MNC Capital.
- Vista said it will now engage with MNC and also seek alternatives for its outdoor gear division.
Catch up quick: CSG improved its offer to $2.15 billion but MNC's more than $3 billion bid for the entire company weighed heavily on shareholders.
- Gates Capital Management, which owns nearly 10% of the company's stock, was vocal in its opposition to the CSG deal and sent multiple public letters imploring Vista to engage with MNC on the $42 per share offer.
- The two sides have fought since the beginning of the year for their respective offers, with CSG increasing its bid for the ammo business, and MNC bumping its full company offer several times.
What we're watching: Vista said in its release that the canceled vote and engagement with MNC would likely lead to the investment firm increasing its bid even further.
